5.10 years (Round to two decimal places.) Data Table Under the payback period, this project would be accepted. (Select What is the NPV for the project at Risky Business? (Click on the following icon o in order to copy its contents into a spreadsheet.) S (Round to the nearest cent.) Initial investment at start of project: $13,900,000 Cash flow at end of year one: $2,502,000 Cash flow at end of years two through six: $2,780,000 each year Cash flow at end of years seven through nine: $2,752,200 each year Cash flow at end of year ten: $1,965,857 Print Done

Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)  Project A             Time: 0 1 2 3 4 5 Cash flow: −$2,300 $870 $870 $780 $560 $360

Consider the six indivisible investment alternatives shown below. The planning horizon is 8 years. The MARR is 15%. $60,000 is available for investment. a. Which investments should be made in order to maximize present worth? b. Solve part a when investments N and P are mutually exclusive and R is contingent on Q.

Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)  Project A             Time: 0 1 2 3 4 5 Cash flow: −$2,100 $790 $810 $740 $520 $320     Payback:  ? Years

1. Google, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusively projects. Project Alpha requires an initial outlay of BD 24000; project Beta requires an initial outlay of BD44000. Using the expected cash inflows given for each project in the following table. Expected cash flow Year Project Alpha Project Beta 1 BD6000 BD19000 2 BD9000 BD6000 3 BD4000 BD4000 4 BD6000 BD13000 5 BD3500 BD5000 6 BD2000 BD4000 Required: 1. Determine the payback period of each project 2. Because they are mutually exclusive, Google must choose one. Which should the company invest in? 3. Explain why one of the projects is the better choice than the other

project which equires initial 3. A con party. вах а outlay of £600.000 and working capital of K180 000. The project net cash inflows are k 200.000 at it is projected current price levels. At the end of 5 years, it is that the project will have a terminal valice of K50 000 and that the elimination of working capital will provide inflow equal to its initial book value. the per year an compamps post tax cost of capital in 14%. in normind Hermo (money teme) and the inflation rate is projected to be 5%. per annum. the equipment will be subjected to tax depreciation allowances of 25% per anmum on reducing balance basis which can be claimed can be claimed against taxable profits from the current year, which is shortly to end The rate of corporate tax is 35% payable in arrears year Required: Determine whether or not the NPV of the project will justify the investment.

You have the opportunity to invest in a project with the following cash flows.   Initial investment/Outlay today: $11,000. Cashflow back to you in 1 year $6000 Cashflow back to you in 2 years $5000 Scrap Value in 2 years $500 Assume interest rates are 5% in the 1 year and 7% in the 2 year. (tip: use the spreadsheet “NPV” from Moodle to helpin your calculations)   a. Calculate the NPV of the project (show formula/workings)? b. Should you invest in this project? Why ?

An investment project has annual cash inflows of $6,300, $7,400, $8,200 for the next four years, respectively, and $9,500, and a discount rate of 19 percent. What is the discounted payback period for these cash flows if the initial cost is $9,500? Multiple Choice O O O O O 1.80 years 2.55 years 1.30 years 3.60 years 0.80 years

MIRR A project has an initial cost of $70,000, expected net cash inflows of $13,000 per year for 11 years, and a cost of capital of 10%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. %

Boomerang Bungee Corp. is considering the following project. Determine the equal annual annuity for the project if the cost of capital is 14%. Initial Investment: $75,000   Year Cash Inflows 1 $30,000 2 $35,000 3 $40,000   a. $2,259.62 b. $4,355.25 c. $7,768.67 d. $5,527.89